NNPCL Releases Adjusted Fuel Price

The Nigerian National Petroleum Company Limited (NNPCL) announced on Wednesday, October 9, that it had increased the ex-depot prices for Premium Motor Spirit (PMS), better known as fuel for marketers.

NNPCL Retail Limited communicated this change through a price list, indicating that the ex-depot price in Calabar is now set at ₦1,050 per litre.

According to the National Oil Company, the ex-depot price in Lagos is ₦1,010 per litre, while in Port Harcourt, it stands at ₦1,045. Additionally, the prices in Ogara, Koko, and Warri are all set at ₦1,040 per litre.

Naija News reports that the latest development on Wednesday forced Nigerians to voice their concerns regarding the hike in fuel prices implemented by the NNPCL, arguing that it will exacerbate poverty levels among the populace.

A report emerged earlier that in Abuja, fuel previously priced at ₦897 is now being sold for ₦1,030.

Similarly, in Lagos, fuel prices have risen from ₦885 per litre to ₦998 and, at some stations, over ₦1,000, resulting in long queues at filling stations.

In response, many Nigerians have turned to social media to express their opinions.

NNPC Ends Exclusive Agreement With Dangote Refinery, Allowing Open Market Access For Petrol

Naija News observed that the recent fuel price hike occurred a few days after the NNPCL officially ceased its exclusive purchase arrangement with Dangote Refinery, opening the market for other petroleum marketers to buy petrol directly from the refinery.

This significant development, reported by PREMIUM TIMES, shifts the market away from the NNPC’s exclusive purchasing role, allowing marketers to negotiate prices with Dangote on a “willing buyer, willing seller” basis.

This transition aligns with Nigeria’s current market practices for fully deregulated products like diesel, aviation fuel, and kerosene, which are already open to direct sales.

With its 650,000 barrels per day capacity, Dangote Refinery began producing petrol in September. Initially, Dangote’s Vice President, Devakumar Edwin, noted that the NNPC would be the exclusive buyer.

However, recent statements from the NNPC clarified that the refinery is free to sell to any interested marketer, removing its previous single-off-taker stance.

On 15 September, NNPC began loading petrol from Dangote Refinery, but it initially limited access to major marketers.

Independent marketers, however, were excluded from lifting the product.

Responding to this, Nigeria’s House of Representatives called on the government to instruct both NNPC and Dangote Refinery to allow independent marketers access.

Lawmaker Oboku Oforji expressed concern that excluding independent marketers could foster monopolistic practices, ultimately pushing some marketers to import fuel to stay competitive.